IPA Brokers $19M California Property Sale at $204 Per Square Foot
- Apr 23, 2013
La Habra, Calif.—Institutional Property Advisors (IPA), a multifamily brokerage division of Marcus & Millichap, arranged the sale of Il Pompeii Apartments, a 111-unit luxury apartment community in La Habra, Orange County, Calif. The $19 million sales price equates to approximately $171,000 per unit and $204 per square foot.
IPA senior director Stewart I. Weston, IPA associate director W. Michael Cavner and Marcus & Millichap vice president investments John L. Nguyen advised the seller. The buyer is a local capital buyer.
“Il Pompeii Apartments is atypical of many properties within its vintage,” says Weston. “The seller and original developer incorporated a number of forward-thinking key amenities and construction features into the original plan.”
“The investment appeal of this asset is driven by strong submarket occupancy and rental growth trends,” adds Nguyen. “All units in this community are commanding market-rate rents.”
“The property has been delivered free and clear, allowing the new owner to take advantage of historically low interest rates,” Cavner concludes.
Situated on five acres and consisting of 11 separate buildings, the two-story residential community is made up of one-, two- and three-bedroom townhouse-style apartment homes.
Constructed in 1969, Il Pompeii Apartments is accentuated with stucco siding and pitched tile roofs. Amenities include a swimming pool with sundeck, a community room, large grass courtyards and greenbelts, beautiful fountains and water features, and barbecue and picnic areas. Select units have been renovated with new flooring, two-tone paint, new appliances, cabinetry, lighting and faucet fixtures.
Key amenities and construction features that were incorporated into the original plan include central air conditioning and heating, copper piping throughout, lead-free paint inside and out and building materials manufactured without asbestos.
Jason Cohen Pittsburgh sells property at a 350 percent premium
Pittsburgh—Jason Cohen Pittsburgh announced the sale of a multifamily property to DNCG LLC on 331 McKee Place, near the University of Pittsburgh. The sale price represented a 350 percent increase from the initial purchase price, according to the company.
With two of the 12 apartment units locked in a long-term lease, gross proceeds from the sale came in at $97,000 per marketable unit. Represented by Cynthia Kamin of CBRE, Cohen received a number of offers for the property within 48 hours of CBRE’s advertising and had the property under contract by the end of the first week. This sale not only illustrated the remaining strength of the highly sought-after Oakland real estate market, but also highlighted the community’s potential to thrive with appreciation.
“There was really no secret to our success there. The University of Pittsburgh is to be commended for maintaining high demand in the area as it continues to be one of the leading universities in the nation,” Cohen explains. “We just recognized that fact and, as a result, benefited. We will continue to call Pittsburgh ‘home’ and plan to fully reinvest the proceeds into the local real estate market.”